“Positive Sentiments in Indonesian Financial Market Driven by JCI, Rupiah and SBN Strengthens”

• JCI, rupiah and SBN successfully strengthened on Wednesday’s trading, some good economic data from within the country was able to provide positive sentiment.
• Inflation in the United States has eased again, expectations of The Fed’s interest rate hike have also decreased, which of course can be a positive sentiment in today’s trading.
• China is now a concern, because inflation is very low and some even say that it is experiencing deflation, which threatens to slow its economic growth. This could be a big problem for Indonesia, because China is the biggest export market.

Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) successfully recorded gains for two consecutive days last Wednesday. Market participants are waiting for the release of United States (US) inflation data which can be good news on Thursday trading (11/5/2023).

Apart from the inflation data, several sentiments that affect the movement of the Indonesian financial market today, such as the big problems that could be caused by China are discussed on page 3.

JCI yesterday closed up 0.47% to 6811.90 on a daily basis. A total of 257 stocks rose, 249 stocks fell, while 224 others flat. Trade shows transactions reaching IDR 8.96 trillion involving 20.17 billion shares that changed hands 1.62 million times.

The rupiah also succeeded in strengthening against the US dollar, although it was only a slight 0.03% to IDR 14,720 / US $, as well as stopping two consecutive days of weakening.

From the bond market, the 1-year tenor Government Securities (SBN) were the only ones that experienced weakening. Other tenors have strengthened as seen from their declining yields.

To note, the movement of yields is inversely proportional to bond prices. When yields fall, it means prices are rising, and vice versa.

Good news came from Bank Indonesia (BI) in the last two days. Last Tuesday, BI reported that the Consumer Survey for April 2023 indicated that consumer confidence in economic conditions had increased compared to the previous month. This is reflected in the April 2023 Consumer Confidence Index (IKK) of 126.1, higher than 123.3 in March 2023.

The more optimistic consumers are, the more spending they will do. This can have a positive impact, because consumer spending is the driving force of the economy. In the first quarter of 2023 its contribution reached 51.88%, in fact only household consumption grew compared to the fourth quarter of 2022, other sectors experienced a contraction.

While yesterday, the Real Sales Index (IPR) for the March 2023 period was recorded at 215.3 or an annual growth of 4.9%. year-on-year (yoy), an increase from 0.6% (yoy) in the previous month.

BI also estimates that retail sales performance on an annual basis will remain strong in April 2023.

This data can provide an illustration of how public consumption will enter the second quarter of 2022, which should grow high considering it is during the month of Ramadan.

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